Friday, April 24th, 2015 at 4:01pm. 10 Views, 0 Comments.
COMMENTARY: Mortgage rates have dropped nationwide, but on a region-by-region basis, they're dropping by different amounts. The rate quote you get will not only depend on your credit score, down-payment and type of housing but also on the location of your property. In today's market, the best place for low interest rates according to Freddie Mac’s weekly interest rate report is the Northeast Coast comprised of NY, NJ, PA, DE, MD and D.C as well as VA, WVA, ME, NH, VT, MA, RI and CT. NE mortgage rates average 3.62% with an accompanying 0.6 discount points. This is only slightly better than rates in the West Region. Western Region mortgage rates also average 3.62%, but require an average 0.7 accompanying discount points.
By contrast, the mortgage…
Tuesday, April 21st, 2015 at 2:45am. 21 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "Nothing is really work unless you would rather be doing something else."--J. M. Barrie, Scottish author and dramatist
INFO THAT HITS US WHERE WE LIVE... Mr. Barrie, the creator of Peter Pan, might call today's housing market another Neverland, since month to month we never quite know what to expect. Following a weather-driven deep dive in February, Housing Starts gained 2.0% in March, reaching a 926,000 annual rate, with single-family starts up a solid 4.4%. In the Northeast, starts rebounded to the fastest monthly growth rate on record, and in the Midwest, they jumped 31.3%. In addition, the total number of homes under construction was up 0.6% for the month and up 16.5% over last year. Naysayers of course
Saturday, April 18th, 2015 at 9:31am. 29 Views, 0 Comments.
COMMENTARY: Against a backdrop of economic reports suggesting rates should be escalating (a stronger than expected March Retail Sales report and Producer Price Index figures), they seem to not only be steady but actually dropping just a bit. I am not entirely sure why mortgage investors chose to shrug off these reports but there may be a wild card to be dealt with over the course of the next week or so -- and it has the potential to be a far more powerful determinant of mortgage interest rate movement than any of the scheduled economic reports.
A contingent of market watchers believe that Q1 corporate earnings reports will show a decline for two consecutive quarters -- the first time this condition has prevailed since the end of the Great Recession.…
Monday, April 13th, 2015 at 2:24pm. 30 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "Every spring is the only spring, a perpetual astonishment." --Ellis Peters (nom de plume of Edith Pargeter), English author
INFO THAT HITS US WHERE WE LIVE... Every spring housing market is also a perpetual astonishment. The Mortgage Bankers Association (MBA) reported mortgage applications for new homes up 17% in March over February. The MBA's VP of research added,"applications for new home purchases during the first quarter of 2015 increased 20% relative to the first quarter of last year." He explained, "job openings are up, wages are beginning to increase more robustly, and mortgage rates remain low, all of which contribute to stronger housing markets." For the week ending April 3, the MBA had purchase
Monday, April 13th, 2015 at 3:00am. 38 Views, 0 Comments.
COMMENTARY: In a rather ho-hum week, the only potential items of significance were Monday's Institute of Supply Management's Service Sector Index (we’re doing fine!) and Wednesday’s release of the minutes from the Fed meeting on March 17 -18th (nothing we didn’t know). Reflecting the very light economic calendar, mortgage investors took their cue from trading action in the stock market and rates stayed fairly steady.
Next week may be a different story. A barrage of significant March economic data ranging from Retail Sales to inflation numbers to housing starts are scheduled to hit the news wires. As I write, the majority of market participants are anticipating solid gains across the board with respect to next week's round of economic data. If these…
Friday, April 3rd, 2015 at 3:52pm. 53 Views, 0 Comments.
COMMENTARY: This was a week of grins and smiles if you were a borrower locking in rates firmly below 4%. Only a scant 3 weeks ago, 30 year fixed rates were spiking at 4.25% and threatening to continue their ascent. Monthly Jobs reports were rolling in, each higher than the last and the Federal Reserve was making plans for increasing the federal discount rate. So how did we get the rollercoaster to start downhill this week? For one, frigid temperatures took a toll on consumer spending in February per Commerce Department figures and were well below economists' projections. The best news of all - particularly for the prospects of steady to perhaps fractionally lower mortgage interest rates -- was news the pace of core inflation at the consumer level…
Monday, March 30th, 2015 at 2:26pm. 53 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "A great pleasure in life is doing what people say you cannot do"--Walter Bagehot, British journalist, businessman, and essayist
INFO THAT HITS US WHERE WE LIVE... Last week we took great pleasure in seeing New Home Sales head up way beyond what the consensus expected, gaining 7.8% in February, to a 539,000 annual rate. This is home sales performance people say you cannot do in the nasty winter weather we had last month in much of the country.New home sales are now up 24.8% over a year ago. Some observers put this to buyers wanting to avoid possible higher mortgage rates later in the year. Their concerns stem from all the talk about the Fed raising rates as soon as midyear. The inventory of new homes
Friday, March 27th, 2015 at 7:10pm. 46 Views, 0 Comments.
COMMENTARY: The real newsmaker of the week was February’s Consumer Price Index showing a surprising increase of .2% over January and by 1.7% over last February 2014. Inflation is one of the key elements the Fed is monitoring to decide when to finally increase the Federal Discount Rate. To refresh, the Discount Rate is the interest rate charged to commercial banks by the Federal Reserve and has been at 0% to .25% for over 5 years. The Fed adjusts the discount rate to rein in inflation or to stimulate the economy. It is also the rate which Prime is based upon. Prime Rate is used to determine Home Equity rates, car loans, credit card rates and more. Bottom line, when the Fed finally starts to increase the discount rate, it will have a secondary effect…
Monday, March 23rd, 2015 at 7:12pm. 94 Views, 0 Comments.
>> Market UpdateQUOTE OF THE WEEK... "All that matters is if you can look in the mirror and honestly tell the person you see there, that you've done your best."--John McKay, American football coach
INFO THAT HITS US WHERE WE LIVE... Of course, sometimes you do your best and the results come in a bit less than that. We're sure builders were doing their best in February, yet Housing Starts dropped a precipitous 17.0% to a disappointing 897,000 annual rate. The Negative Nellies in the media got all bent out of shape over this, but let's look at some of the other data during the month. Retail sales were down, but not Internet and mail order buying. Manufacturing numbers were off, but utility businesses did very well. Could it have been the
Friday, March 20th, 2015 at 3:54pm. 70 Views, 0 Comments.
COMMENTARY: Mortgage investors were breathless with anticipation on Wednesday as they awaited word from the 2-day Federal Reserve monthly meeting and they were not disappointed. How they reacted to the news however was very much a surprise! As anticipated, the Fed met widespread market expectations and dropped the word "patience" from their rate hike guidance. This move was widely expected to cause rates to immediately increase. Didn’t happen! Curiously, rates actually dropped a bit. They answer why was due to how strongly the Fed noted economic growth has moderated over the six weeks and their acknowledgement that when the rate hike process begins, the rate of increase will probably be less - and spread over a longer period of time - than in…